Best Large Cap Mutual Funds

Large-capitalization funds are the type of equity funds that invest a big proportion of their assets under management in equity shares of companies that have a large market capitalization. Along with that, large cap companies are the ones known to have a strong reputation in the market. A list of the best large cap funds is given below.

Before finding the best large cap mutual funds for your portfolio and investing in them, consider if you are-

1. Low-Risk Profile Investor: The underlying companies of large cap mutual funds are large capitalization companies that are already well-established and provide stable returns. This ensures the fund will not undergo sudden highs and lows and offer stable returns over time. Therefore, it is most suitable for investors with a low-risk appetite. 

3. New Mutual Fund Investor: It is suitable for investors who are new to the mutual fund investment environment since they have a low-risk portfolio when compared to other equity mutual funds and ensure investors can benefit from the investment more even without expertise. 
4. Long-Term Investor: large cap mutual funds are known to perform well over a long period of time. Given that there are minimal risks, and it is not completely risk-free, these funds are known to face short-term market fluctuations. Therefore, it is advised to stay invested in these funds for the long term.

If you are investing lumpsum in mutual funds and looking forward to estimating your returns, simply use lumpsum calculator. It is a convenient tool that can assist you in generating your prospective returns.

While finding the best large cap mutual funds to invest in 2025, there are certain factors you would have to consider, and they are:

1. Moderate Returns in Comparison to Small or Mid-Cap Funds

The returns from large-cap funds are quite moderate when it is kept in comparison to small-cap or mid-cap mutual funds. This is because the underlying companies of large-cap funds are well-established and over the maturity phase. This leads them to provide stable returns but not high returns necessarily.

2. Large Cap Funds are Prone to Fluctuations too

Although the risks associated with large cap mutual funds are low, they still carry a certain amount of risks. It has risks similar to equity mutual funds. 

3. Long Term Investment

Large cap mutual funds are known to provide good returns only in the long term. Therefore, these funds will be most suitable only to the investors who seek to stay invested for the long term.

Investors can reap the following benefits by allocating their savings to the best large-cap mutual funds in India: 

• Low-risk factor: Large-cap funds are associated with lower risk level when compared to other types of equity funds. 

• Highly liquid: Large-cap fund units are easily redeemable anytime after the purchase. The investment is also partially withdrawable. 

• Investment options: One can invest in large-cap MFs in any of the two ways – SIP and lump-sum. The decision rests with the investor. 

• Offers stability: Large-cap companies are usually well-positioned to resist economic downturn. Hence, they provide stability to investors.  

• Steady capital appreciation: Those companies have sound operations, a prudent business model, and a proven track record of consistent revenue generation. 

Sectoral diversification: This type of MF scheme invests in blue-chip companies across various sectors, thus, diversifying the portfolio of investors.

The risks associated with large-cap funds are:

1. Market Risks

There is the risk of poor market performance, and it can take place because of internal and external influences like geo-politics and economic factors. These kinds of risks are inevitable because market factors cannot be estimated.

2. Liquidity Risks

Liquidity risk is where the fund manager may have to sell securities because they were unable to make profits because of a shortage of buyers. When there is liquidity risk, it is hard to liquidate the fund, and you will have to stay invested.

3. Interest Rate Risks

Rising interest rates can cause securities prices to fall in the other way. These interest rates are determined by the issuer's credit availability and market demand.

Disclaimer: Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.